Investment in Unconsolidated Joint Ventures

In addition to the 42 office and parking properties included in the consolidated financial statements, the Company has also invested in three unconsolidated joint ventures with unrelated investors that own seven office properties as of March 31, 2014. These investments are accounted for using the equity method of accounting. Accordingly, the assets and liabilities of the joint ventures are not included on the Company's consolidated balance sheet at March 31, 2014. Information relating to these unconsolidated joint ventures is summarized below (in thousands):



Joint Venture Entity	Location	Parkway's Ownership%	Number of Properties	Square Feet	Percentage Occupied	Balance at March 31, 2014		Balance at December 31, 2013
PKY/CalSTRS Austin, LLC ("Austin Joint Venture")	Austin, TX	40.00%	5	2,433	82.7%	$	77,412	$	93,171
US Airways Building Tenancy in Common ("US Airways Building")	Phoenix, AZ	74.58%	1	225	100.0%	42,811		42,501
7000 Central Park JV LLC ("7000 Central Park")	Atlanta, GA	40.00%	1	415	77.9%	15,561		15,490
			7	3,073	83.3%	$	135,784	$	151,162

The following table summarizes the balance sheet of the unconsolidated joint ventures at March 31, 2014 (in thousands):



	US Airways Building		7000 Central Park		Austin Joint Venture		Total

Cash	$	2,284	$	2,433	$	5,601	$	10,318
Restricted cash	—		153		1,062		1,215
Real estate, net	48,790		48,979		719,247		817,016
Intangible assets, net	5,486		6,572		56,542		68,600
Other assets	474		935		14,551		15,960
Total assets	$	57,034	$	59,072	$	797,003	$	913,109

Mortgage debt	$	13,693	$	30,000	$	627,905	$	671,598
Other liabilities	363		2,021		38,733		41,117
Partners' equity	42,978		27,051		130,365		200,394
Total liabilities & partners' equity	$	57,034	$	59,072	$	797,003	$	913,109

The following table summarizes the income statements of the unconsolidated joint ventures for the three months ended March 31, 2014 (in thousands):



	US Airways Building		7000 Central Park			Austin Joint Venture			Total
Revenues	$	1,126	$	1,848		$	13,364		$	16,338
Operating expenses	—		850			5,591			6,441
Net operating income	1,126		998			7,773			9,897
Interest expense	104		(85		)	5,169			5,188
Depreciation and amortization	522		1,160			5,569			7,251
Net income (loss)	$	500	$	(77	)	$	(2,965	)	$	(2,542	)

With respect to the Austin Joint Venture, the Company's share of Partner's equity is $52.2 million and the Company's share of Partner's excess investment is $25.2 million at March 31, 2014. "Excess investment" represents the unamortized difference of the Company's investment over the Company's share of the equity in the underlying net assets of the joint venture acquired and is allocated on a fair value basis primarily to investment property, lease related intangibles and debt premiums. The Company amortizes excess investment over the life of the related depreciable components of investment property, typically no greater than 40 years, the terms of the applicable leases and the applicable debt maturity, respectively. The amortization is included in the reported income from unconsolidated joint ventures.

On December 19, 2013, in connection with the merger transactions (the "Mergers") with Thomas Properties Group, Inc. ("TPGI"), the Company acquired TPGI's interest in a joint venture with Madison International Realty ("Madison"), which owned a 50% interest in the Austin Joint Venture. The California State Teachers' Retirement System ("CalSTRS") owned the remaining 50% interest in the Austin Joint Venture. On January 24, 2014, pursuant to a put right held by Madison, the Company purchased Madison's interest in the Madison joint venture (representing an approximate 17% indirect interest in the Austin Joint Venture) for a purchase price of approximately $41.5 million. On February 10, 2014, pursuant to an agreement entered into between CalSTRS and the Company, CalSTRS exercised an option to purchase 60% of Madison's former interest on the same terms as the Company for approximately $24.9 million. The Company recorded a gain of approximately $6.3 million during the three months ended March 31, 2014. After giving effect to these transactions, the Company has a 40% interest in the Austin Joint Venture, with CalSTRS owning the remaining 60%. The Austin Joint Venture owns the following properties: San Jacinto Center; Frost Bank Tower; One Congress Plaza; One American Center; and 300 West 6th Street.